Which of the Following Best Describes a Competitive Industry

question 49

Multiple Choice

Which of the following best describes a competitive industry?

• A) Its firms sell similar products and have little control over their prices; there are many buyers and sellers and each is relatively small compared with the overall market.
• B) Its firms sell similar products and have direct control over their prices; there are many buyers and sellers and each is relatively small compared with the overall market.
• C) Its firms have little control over the price of their product; the demand curve for each firm's product is downward sloping; there are many firms.
• D) Its firms sell differentiated products and there are few potential sellers. They have little control over the price of their product; there are many relatively small buyers.

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Definitions:

Higher Profits

An increase in the amount of money that is left after all operating expenses, taxes, and costs have been subtracted from total revenue.

Resource Suppliers

Entities or individuals that provide the essential inputs required for the production of goods or services.

Allocation Of Resources

Allocation of resources refers to the process of distributing available resources among various competing needs and uses in an economy to maximize efficiency and welfare.

Public Interest

The welfare or well-being of the general public, often used as a guideline for determining policy related to law, governance, and community health.